MS&Consulting Co.,Ltd. (6555) AI Stock Analysis

• Market Cap: ¥1.91B
• Dividend Yield: N/A
• Average Volume (3M): 4.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: 8.27%
• EPS Growth: -295.89%
• Country: JP
• Employees: 145
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 10.09
• Shares Outstanding: 4,597,400
• 10 Day Avg. Volume: 7,060
• 30 Day Avg. Volume: 4,180
• PEG Ratio: 0.02
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 4.32
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥460.00 ▲(9.52% Upside)

The score is driven primarily by mixed financial performance: strong balance sheet and improved TTM cash generation help, but declining revenue and current losses meaningfully cap the rating. Technicals are supportive with an uptrend across moving averages and positive MACD, while valuation is penalized by the negative P/E and lack of dividend data.

Positive Factors

Conservative Balance Sheet

Very low leverage and a large equity base provide durable financial flexibility, reducing refinancing and solvency risk. This conservatism allows the firm to fund client projects, absorb shocks, and invest in strategic initiatives without immediate pressure from creditors.

Strong Recent Cash Generation

Robust trailing-twelve-month operating and free cash flow indicate the business can convert revenue into cash despite an accounting loss. Sustained FCF supports reinvestment, working capital needs, and optional returns to stakeholders, bolstering operational resilience.

Healthy Gross Margin and Service Value

A ~34% gross margin implies the firm retains meaningful pricing power in its consulting services. Combined with specialized advisory offerings, this margin level supports profitability if operating costs are controlled and helps sustain long-term competitive positioning in client engagements.

Negative Factors

Declining Revenue and Negative Net Margin

A shrinking top line and a negative net margin reflect weakened demand or pricing pressure and hinder return generation. Over several months this undermines reinvestment capacity and investor confidence; recovering profitable growth is necessary for durable improvement in fundamentals.

Cash Flow Volatility in Prior Years

Historic swings from negative to strong cash flow increase execution risk: budgeting, hiring, and client commitments become harder to sustain. While recent TTM FCF is positive, inconsistent cash generation raises doubts about the persistence of cash-driven strength.

Project-Based Revenue Cyclicality

A business model reliant on project billing tends to produce lumpy, client-dependent revenue and makes scaling predictable recurring income harder. Without growth in retainer or long-term contracts, cyclicality can pressure margins and staffing utilization over multi-quarter horizons.

MS&Consulting Co.,Ltd. Business Overview & Revenue Model

Company Description

MS&Consulting Co., Ltd. operates as a marketing research company in Japan. It provides mystery shopping research, business consulting, and employee satisfaction assessment. The company serves clients in service sector, such as restaurant, cosmetics, hospitality, banking, retails, etc. MS&Consulting Co., Ltd. was founded in 2008 and is headquartered in Tokyo, Japan.

How the Company Makes Money

MS&Consulting generates revenue primarily through its consulting services, which are billed on a project basis or via retainer agreements with clients. Key revenue streams include fees for strategic advisory services, project management, and operational consulting. The company also benefits from long-term partnerships with corporate clients and government agencies, which provide a steady stream of income. Additionally, MS&Consulting may engage in training and workshops, offering specialized programs that further contribute to its earnings.

MS&Consulting Co.,Ltd. Financial Statement Overview

Summary

Financials are mixed: TTM revenue declined (-2.9%) and the company is loss-making (net margin -7.5%), but the balance sheet is conservatively financed (debt-to-equity ~0.07) and TTM operating/free cash flow are solid (~¥375M/¥374M). The key risk is restoring operating profitability and sustaining recent cash flow improvement given prior-year volatility.

Income Statement

TTM (Trailing-Twelve-Months) revenue is slightly down (-2.9%), and profitability is weak with a net loss (net margin -7.5%) and near-breakeven EBITDA margin. This follows a sharp deterioration versus prior profitable years (2022–2024 annual), indicating margin pressure and an unstable earnings trajectory. A positive is that gross margin remains reasonable (~34%), suggesting the core offering still has pricing/value, but operating profitability has not held up.

Balance Sheet

The balance sheet looks conservatively financed, with low leverage (TTM debt-to-equity ~0.07) and a large equity base relative to assets. This provides meaningful financial flexibility and reduces refinancing risk. The main weakness is returns: TTM return on equity is negative due to the current loss, so while solvency is strong, shareholder returns are currently under pressure.

Cash Flow

Cash generation is a clear bright spot: TTM operating cash flow (~¥375M) and free cash flow (~¥374M) are solid and free cash flow growth is positive. Cash flow is strong relative to reported earnings (free cash flow roughly matches the magnitude of net income despite a net loss), implying good cash conversion and/or non-cash charges supporting cash profitability. A risk is volatility in prior years (2023–2024 annual showed weak operating cash flow and negative free cash flow), so consistency bears watching.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.61B	2.55B	2.39B	2.21B	1.93B	1.31B
Gross Profit	865.01M	800.73M	800.17M	884.74M	754.75M	222.93M
EBITDA	-22.77M	-131.00M	267.33M	407.27M	387.51M	-228.97M
Net Income	-215.38M	-276.10M	114.37M	219.69M	206.51M	-244.55M
Balance Sheet
Total Assets	3.61B	3.38B	3.55B	3.73B	3.90B	3.85B
Cash, Cash Equivalents and Short-Term Investments	905.66M	578.93M	330.20M	666.15M	1.07B	873.64M
Total Debt	163.42M	241.18M	186.49M	129.06M	268.15M	473.76M
Total Liabilities	773.71M	826.40M	723.99M	770.40M	1.03B	1.13B
Stockholders Equity	2.88B	2.59B	2.86B	2.99B	2.89B	2.75B
Cash Flow
Free Cash Flow	374.04M	400.90M	-142.42M	-65.33M	464.57M	160.37M
Operating Cash Flow	375.47M	406.81M	13.11M	6.42M	516.72M	207.57M
Investing Cash Flow	-124.29M	-130.13M	-176.53M	-71.75M	-47.70M	-46.32M
Financing Cash Flow	100.17M	-30.38M	-173.09M	-342.15M	-268.66M	180.62M

MS&Consulting Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 420.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6555, the sentiment is Positive. The current price of 420 is below the 20-day moving average (MA) of 428.00, below the 50-day MA of 420.30, and above the 200-day MA of 403.52, indicating a neutral trend. The MACD of -1.36 indicates Positive momentum. The RSI at 46.34 is Neutral, neither overbought nor oversold. The STOCH value of 13.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6555.

MS&Consulting Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6193	70 Outperform	¥2.99B	13.50	―	1.52%	4.73%	135.75%
3908	68 Neutral	¥1.91B	13.40	―	―	-10.98%	―
3670	67 Neutral	¥2.56B	8.98	―	2.76%	-9.03%	53.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6555	61 Neutral	¥1.91B	-7.60	―	―	8.27%	-295.89%
9240	51 Neutral	¥2.59B	27.54	―	―	6.61%	12.06%
9250	50 Neutral	¥1.59B	-3.02	―	―	5.17%	―